WEB Olympus CSR Report 2012 (Only in Japanese)

http://www.olympus.co.jp/jp/csr/access/download/full-2012/

The management of Olympus sincerely regrets the financial misconduct that came to light in 2011, including the failure to report losses in a timely manner, and the inclusion of falsi-fied information in financial statements. We are determined to prevent any recurrence of such problems, and to rebuild Olympus as a company that can once again earn the trust of its stakeholders.

Our efforts in the period immediately following the discov-ery of the problems were reported in a special edition of the 2012 CSR Report, which was published in August 2012 under the title “Rebuilding Trust: The First 100 Days” (hereinafter re-ferred to as “the Special Edition”).

In addition to the Olympus Group’s approach to CSR and our CSR track record in fiscal 2011, the Olympus CSR

Report 2012 Digest also describes our recent efforts to rebuild Olympus since the publication of the 2012 special edition.

We will continue to distribute information about our efforts through CSR Reports and our website. We welcome your comments about the content of this report or any other infor-mation that we issue.

Editorial Policy

● GRI, Sustainability Reporting Guidelines Ver. 3.1● Environmental Reporting Guidelines (2007) of

the Ministry of the Environment, Japan● Environmental Accounting Guidelines (2005) of

the Ministry of the Environment, Japan

Reference Guidelines

April 1, 2011–March 31, 2012Note: Corporate rebuilding initiatives implemented after the financial

improprieties (including those in the Olympus CSR Report) and other significant items are covered up to November 2012.

Period Covered by the Report

March 2013(Previous edition published in November 2011, the next edition scheduled for December 2013)

Publication Date (Digest Version)This report is based on information available at the date of pub-lication. Please refer to timely disclosure data for information about the current situation.

Some information in this report duplicates the content of the CSR Report 2012 (Special Edition).

Disclaimer

This report covers Olympus Corporation, its consolidated sub-sidiaries and affiliated companies as of March 31, 2012. The Social Report covers Olympus Corporation, Olympus Medical Systems Corporation, Olympus Imaging Corporation. Other companies are covered as indicated. The environmental re-port covers Olympus Corporation, Olympus Medical Systems Corporation, Olympus Imaging Corporation and their main do-mestic and overseas production subsidiaries.

Organizations Covered by the Report

Contact point for comments and inquiries:

Olympus CorporationCSR Department, Group Compliance DivisionTelephone: +81-3-6901-9299E-mail: csr_info@ot.olympus.co.jp

Financial reporting Non-financial reporting

CSR Report 2012 (published in

December 2012)

Olympus CSR activity website

Digest of CSR Report 2012

(published in March 2013)

Investor Relations website

Overview of CSR and Environmental Information

● CSR Report 2012 Digest (this publication) (Published in March 2013)This report was produced as a communications tool to provide stakeholders with a summary of information about initiatives and other important data for fiscal 2011.

● CSR Report 2012This report contains comprehensive informa-tion, including descriptions of specific initia-tives and detailed data.

http://www. olympus-global.com/en/csr/

(Only in Japanese)

WEB Olympus CSR Report 2012 (Special Edition) Rebuilding Trust: The First 100 Days

http://www.olympus-global.com/en/common/pdf/csr_report_2012.pdf

1Olympus CSR Report 2012 Digest

Biological MicroscopesThe BX3 Series

Digital SLR Cameras The Olympus OM-D E-M5

Please visit the investor relations website for updates and detailed information.

WEB Investor Relations http://www.olympus-global.com/en/ir/

WEB Corporate Information http://www.olympus-global.com/en/corc/

Profile of the Olympus Group

Olympus CorporationEstablished October 12, 1919

Head office Shinjuku Monolith, 3-1 Nishi-Shinjuku 2-chome, Shinjuku-ku, Tokyo 163-0914, Japan

Activities Manufacture and sale of precision equipment

Capital ¥48,332 million (as of March 31, 2012)

EndoscopesThe Evis Lucera Elite videoscope system

Medical Business41.2%

Life Science & Industrial Business10.9%

Imaging Business15.1%

Information andCommunicationBusiness27.0%

Others 5.8%

0

10,000

20,000

30,000

40,00034,112

(fiscal year)2007 2008 2009 2010 2011

35,772 36,503 35,376 34,391

Japan46.9%

North America19.5%

Europe18.4%

Asia &Oceania12.7%

Others 2.5%

(100 millions yen)■ Consolidated net sales ■ Operating income ■ Net income

-2,000

2,000

0

6,000

10,000

14,00011,289

1,128

546

9,808

427

-506

8,831

612

525

8,471

384

39

8,485

355

-490

(fiscal year)2007 2008 2009 2010 2011

Business Fields

Top Interview ……………………………………………………… 3

Building the New Olympus ……………………………… 7

Olympus CSR

Management Philosophy and Corporate Conduct Charter ………………………… 8

CSR Management ……………………………………… 10

Improvement of Internal Control Systems ………………………………………… 12

The Olympus Response to the Great East Japan Earthquake ……… 15

For Customers ……………………………………………………… 19

For Suppliers ………………………………………………………… 20

For Employees and Their Families …………………… 21

For Society …………………………………………………………… 22

For the Environment …………………………………………… 23

Stakeholder Dialog ……………………………………………… 25

Contents

Corporate Profile/Financial Highlights

Medical BusinessManufacture and sale of medical endoscopes, surgical endoscopes, endotherapy devices, etc.

Life Science & Industrial BusinessManufacture and sale of biological microscopes, industrial microscopes, industrial endoscopes, non-destructive testing equipment, etc.

Imaging BusinessManufacture and sale of digital cameras and IC recorders

Information and Communication Business*Sale of mobile telephones, etc.

Other ActivitiesDevelopment of systems, manufacture and sale of biomaterials, etc.

* The Information and Communication Business was transferred to Japan Industrial Partners, Inc. on September 28, 2012.

Segment contributions to consolidated net sales in fiscal 2011

Consolidated net sales, operating income, net income

Consolidated net sales by market in fiscal 2011

Consolidated number of employees

Special Feature

2Olympus CSR Report 2012 Digest

Three Corporate Management Policies for Rebuilding Olympus’ Reputation

─ One of the first steps taken by the new management

team was to announce a medium-term vision targeted to-

ward the creation of a new Olympus. What is this vision,

and how was it developed?

Sasa: The new management team based its medium-term

vision on a five-year restructuring plan. The company also

adopted three corporate management policies: “Back to

Basics,” “One Olympus” and “Profitable Growth.”

Olympus was founded to promote the health and well-

being of Japanese people with the manufacture of its micro-

scopes. It also created the world’s first gastrocamera and

waterproof fiberscopes, and more recently has developed

NBI*1 optical technology to support high-resolution diagnos-

tic imaging. Our half-sized camera*2 was also a world’s first.

“Back to Basics” means taking Olympus back to its roots as

one of the world’s leading innovators in the field of imaging

technology.

“One Olympus” will unite the company’s staff to move the

company forward and give them a stake in the company’s

new medium-term vision by making them aware of their roles

and goals within that vision.

In addition to the shortcomings in corporate governance

that resulted in financial improprieties, the previous manage-

ment team also lost sight of the basics. They invested in areas

other than our core imaging businesses, and manufacturing in

particular, where our real strengths lie, and became obsessed

with expansion. “Profitable Growth” means generating profits

from the core businesses in which we excel. Without profits,

we cannot contribute to society.

We’ve taken a number of steps to achieve these goals.

First, we’ve restructured our business portfolio by looking at

the company as a whole and identifying the sectors on which

we will focus our efforts.

Olympus has made a fresh start with a new governance structure and is working to regain the

confidence of its stakeholders and improve its corporate value with a new medium-term vision

based on the following three corporate management policies: “Back to Basics,” “One Olympus,”

and “Profitable Growth.”

We are united in our determination to go back to the basics of our business, build a highly transparent governance structure, restore our reputation, and improve our corporate value.

An Interview with the Chairman and President

OLYMPUS CSR REPORT 2012

3Olympus CSR Report 2012 Digest

Kimoto: The people who actually make products are moti-

vated by their determination to do their very best to create

solutions that will benefit customers and the world. Olympus

has a strong sense of mission and a very ethical approach

to manufacturing. Unfortunately, it failed to achieve a proper

balance because of failings in the mechanisms and admin-

istration of its board of directors and governance systems.

Another major issue was the spread of indifference among

the employees in the company. When I talk with Olympus

employees, they invariably ask me how these problems

could have developed when they were working so hard to

make the company successful. When a company grows

large, it seems that some employees stop thinking about the

company as a whole or about what is happening in other

departments and busi-

ness areas. The most

effective way to remedy

these problems is to

disclose as much infor-

mation as possible and

create an environment

in which that information

is accessible to the wid-

est possible number of

employees.

Sasa: Our most important priority is to create a workplace

environment in which people feel free to speak. We are still at

the exploratory stage and this is a project that will require a

considerable amount of time and effort to accomplish.

Kimoto: As part of our efforts to improve corporate govern-

ance, we’ve appointed a new board of directors on which

the majority is outside directors. I believe that we’ve brought

together a group of people with a strong commitment to

participation. I’d say that Olympus now has one of the strong-

est boards in Japan in terms of the nature and scope of its

discussions. We’ve also built a governance framework that

is functioning extremely effectively. Our next task is to create

specific mechanisms to continue to monitor and optimize our

corporate governance and set them in motion. This may take

a little time, but I believe that we’re gradually moving forward

with the changes, including changes in awareness.

─ Olympus is a leading technology company, whose

workforce aspires to the highest ethical standards.

Sasa: If we can make the “One Olympus” mission statement

a reality, I think we’ll be able to overcome our past difficul-

ties. Because I want all of our employees to understand our

management philosophy and medium-term vision, I make

sure that I explain my thinking on every issue. This means

a marked increase in both the volume and content of inter-

nal communications, but before we can proceed, we have

to ascertain how these communications are received and

understood. People in production, development and sales,

for example, will think about things differently––as do staff in

our domestic and overseas operations. In an effort to attain

their direct input, I’ve organized town hall meetings with small

employee focus group across the company.

The Starting Point for Social IN Management

─ Can you explain how the “Social IN” management

philosophy helps Olympus fulfill its corporate social

responsibilities?

Sasa: The aim of the “Social IN” philosophy is to make

corporate social responsibility an integral part of Olympus’

products and business activities. Our Social IN values include,

“INtegrity,” which means maintaining the highest ethical

standards, “INnovation,” which is the process of creating new

technological value, and “INvolvement,” which is our commit-

ment to engaging with and contributing to society. In simple

terms, our goal is to become essential to society through our

manufacturing and business activities, so that our employees

and their families can feel proud of Olympus and its mission

to contribute to the betterment of society.

─ You’ve spent your entire career in manufacturing,

haven’t you, Mr. Sasa?

Sasa: That’s right. I joined this company because I wanted to

make a practical contribution to improving human health and

medical care. I’ve spent my whole career developing medi-

cal equipment. I’ve been able to work in an area that reflects

my own personal beliefs. Like most development engineers, I

have a very strong commitment to the products that I make.

Because development engineers cannot use endoscopes

themselves, we work closely with doctors. There is a repeated

process through which we show our prototypes to doctors,

listen to their views, and make improvements. We at Olympus

feel a very special sense of pride when people tell us that our

products facilitated procedures that have helped patients in

the real world.

The basic motivation for manufacturing is the satisfaction

that comes from making things that help people and contrib-

ute to society. To create products that contribute to society,

we have to become involved in society, share its values, and

apply those values to future products. As a result of this proc-

ess, society provides us with a return in the form of profits.

The ability to maintain this cycle successfully is the most

fundamental requirement for manufacturing and we must not

become preoccupied with the short-term pursuit of profit.

*1 NBI stands for “narrow band imaging.” Using part of the visual spectrum that is readily absorbed by hemoglobin in the blood, it provides high-resolution images and enhanced visual contrast of the surface structures and fine capillary patterns of mucous mem-branes, which are normally difficult to distinguish.

*2 Half-size cameras take pictures on 35 mm (135) film using an 18 mm×24 mm format that is half as big as a full-size exposure (36×24 mm). These cameras were popular in the days when film was expensive, since they could capture twice as many images on a single roll.

4Olympus CSR Report 2012 Digest

Chairman, Olympus Corporation

Yasuyuki KimotoPresident and Representative Director, Olympus Corporation

Hiroyuki Sasa was born in Tokyo in 1955. He joined Olympus in 1982 and became General Manager of the Endoscope Business Planning Department in April 2001, Division Manager of the First Development Division of Olympus Medical Systems Corporation in April

2005, Division Manager of the Marketing Division of Olympus Medical Systems Corporation in April 2007, an Executive Officer and Director of Olympus Medical Systems Corporation in June 2007, and Assistant to the President and Assistant to the Group President of the Information & Communication Group in March 2012. He has been Representative Director and President of Olympus Corporation since April 2012.

Hiroyuki Sasa

─ I believe that Olympus was an early participant in

the United Nations Global Compact.

Sasa: Olympus joined the Global Compact in 2004. Because

of the firm’s recent problems, Olympus had to withdraw from

the Global Compact Japan Network. However, we’ve con-

tinued our Global Compact activities. I believe that by putting

our “Social IN” philosophy and Corporate Conduct Charter

into practice, we are also complying with the Ten Principles

of the Global Compact and fulfilling our social responsibilities.

We also need to ensure that these concepts are thoroughly

assimilated within the company.

─ It is a mistake to assume that corporate social re-

sponsibility is outside of your core business operations,

such as sponsoring local cultural activities. In fact, isn’t it

true that the international view of social responsibility is

that it must be an integral part of a company’s core busi-

ness activities? In this sense, wouldn’t you agree that the

“Social IN” philosophy is an accurate expression of the

true meaning of corporate social responsibility?

Kimoto: Olympus has adopted the concept of group man-

agement, so we apply the same corporate management

philosophy globally. This means that people overseas as well

as in Japan must share the same beliefs and values. Although

this may seem to be a roundabout way to reach our goals, in

reality, it’s a shortcut. The most important thing for Olympus

right now is the ongoing process of visiting our workplaces

by Mr. Sasa and myself to engage with our employees face

to face. In the past there was a large gap between the fac-

tory floor and top management. We have to bridge that gap.

Our efforts may not produce visible results immediately, but I

believe that we need to continue this process. I’ve also visited

overseas operations, and wherever I go, people are very hap-

py to have the opportunity to talk with me and make direct

presentations about their work to the chairman of the parent

company. We need to carry out initiatives such as these as

much as possible. The problems will not be solved overnight,

but we need to continue these efforts.

─ Would you agree that there is also a need for top

management to make strenuous efforts to ensure that

their messages are consistently understood and applied?

Kimoto: Of course. Employees watch what top management

is doing, so the things we say are very important. However,

the impression I’ve formed through visits to factories and of-

fices is that messages from top management are not always

easily understood. I think we need to repeat the same con-

cise messages over and over. In the company of which I was

previously president, we repeated the same core principles for

six years.

An Alliance Based on Shared Strengths

─ Can you tell me about Olympus’ new business part-

nership with Sony Corporation?

Sasa: We were considering ways to raise capital, when we

had the good fortune of encountering an excellent partner that

could also offer strategic benefits to our business. There is

little overlapping of technology between the two companies,

and Sony has much technology that we need. Specifically,

we’re talking about a partnership in the areas of healthcare,

imaging and life science. However, we don’t want employees

to think that they’re being

forced into this partner-

ship because of decisions

made a t the top . We

expect the partnership

process to reveal that

there’s much to be gained

through cooperation, and

that we should all work

together to realize those

gains.

Kimoto: Olympus employees have a sense of pride that they

can achieve anything within the Olympus organization, but in

fact there are many things that we can’t make ourselves. It’s a

Yasuyuki Kimoto was born in Osaka in 1949. He joined The Sumitomo Bank, Limited (now Sumitomo Mitsui Banking Corporation) in 1971 and became a Director in 1998, and an Executive Officer in 1999, a Managing Executive Officer in 2002, a Managing Director

and Managing Executive Officer in 2004, and a Senior Managing Director and Senior Managing Executive Officer in 2005. He became President and CEO of The Japan Research Institute, Ltd. in 2006 and was appointed a Special Advisor to that organization in April 2012. He has been Chairman of Olympus Corporation since April 2012.

5Olympus CSR Report 2012 Digest

matter of balance. By working with another company, we can

take our achievements to a higher level and spread our wings

wider. The fact that we’ll be working with Sony in certain fields

is an excellent opportunity. We have excellent technology, and

we should be proud to share it openly.

Sasa: Some people are worried about our ability to work with

a company that has a different corporate culture, but I believe

that both companies will be able to learn a great deal from

one another, precisely because of their differences. This is a

real opportunity. Of course, there will be times when we can

compromise and times when we can’t. The key to success

in any joint venture is the ability to compromise and reach an

understanding that will benefit both parties.

Kimoto: Whenever two companies collaborate in a joint

venture, they’re likely to approach it from completely differ-

ent perspectives. If those differences generate progress, the

process will create value for both companies. There will also

be cases in which collaboration doesn’t work, but if you worry

about that before you begin, you’re going to miss out on huge

potential gains for both parties.

Realizing the Medium-Term Vision

Sasa: Our ability to realize our medium-term vision depends

on the willingness and trust of our employees. We’re chang-

ing our corporate structures, trying new ways of doing things

and implementing reforms throughout the business. We need

to put our heart and soul into this work and believe that by

pursuing the goals expressed in the “Back to Basics,” “One

Olympus,” and “Profitable Growth” paradigms, we shall re-

build Olympus from the bottom up, while at the same time

providing returns to our stakeholders. However, this is not a

task that top management can accomplish on its own. We

need the support and help of all of our employees, and to do

this effectively we also need to increase leadership education

throughout the entire corporate structure.

Kimoto: A company needs to have aspirations and dreams.

For example, in the field of gastrointestinal endoscopy, we can

turn our designs into global standards. A dream is a wonder-

ful asset that also brings with it huge responsibilities.

This goal will be an enormous challenge. It is not sim-

ply a matter of attaining world-beating technical excellence.

We’re also in a position to think about the implications for

doctors, patients and a wide range of other stakeholders. In

that sense, Olympus is a company with huge dreams, and

with the opportunity to take up the challenge of realizing

those dreams. Before we can do that, however, we have to

rebuild. I see even that task as part of our efforts to achieve

our dreams. Few companies offer such opportunities. This is

work that will give us real satisfaction. Obviously there’ll be

difficulties ahead, but we’ll continue to move forward towards

the realization of our dreams.

At Olympus Corporation, we sincerely regret that past financial accounting misconduct has caused our customers and society enormous difficulties and undermined stakeholder confidence. With this in mind, and in keeping with our company’s “Social IN” philosophy, the new management team hereby declares our commitment as follows:

To regain stakeholder trust and to enhance corporate value, Olympus’ management is committed to complying with all laws and regulations and respecting social norms at all times.

In the effort to achieve sustainable growth, the management team reaffirms the importance of laws, regula-tions and social norms and will work to foster a corporate culture where each employee, as a member of the Olympus Group, will consider what is right and act in accordance with our company’s guiding principles.

We will thoroughly investigate any violations to this commitment, past or present, taking corrective actions and implementing preventive measures as necessary.

By transforming our organization, we aim to create new value for society, to improve communication with all stakeholders, and to increase the transparency of our decision making.

We reaffirm our basic mission of creating value for society through innovative technology, quality products and unparalleled service, and we pledge that all employees of the Olympus Group will make a concerted effort to help people worldwide lead healthier and more fulfilling lives.

Hiroyuki SasaPresident and Representative Director, Olympus Corporation

Commitment to ComplianceOlympus Corporation

6Olympus CSR Report 2012 Digest

Building the New Olympus

Olympus Corporation has adopted a new five-year,

medium-term vision, starting in fiscal year 2012.

The new vision aims to return the company to the

basic founding values of Olympus. Our goal is to make

a fresh start and regain the trust of our stakehold-

ers, build our company anew, and enhance corporate

value.

Based on the problems identified by the Third-Party Committee and their recommendations concerning the preven-

tion of recurrences, we will implement the following preventive measures to ensure that problems of this type never

happen again.

On January 21, 2012, the Tokyo Stock Exchange de-

signed Olympus as a “security on alert.”

From now on, Olympus will be required to submit

a written report to the Tokyo Stock Exchange each

financial year, detailing the status of its internal control

systems and other matters. The “security on alert”

designation will be lifted if the Tokyo Stock Exchange

Medium-Term Vision Toward Realization of a New Olympus

Measures to Prevent Recurrences

Measures to Remove the “Securities on Alert” Designation

Back to Basics

One Olympus

Profitable Growth

Corporate ManagementPolicies

Rebuild our business portfolioand optimize the allocation ofour management resources

Review our cost structures

Restore our financial health

Restructure our governance

Basic Strategies

Strengthen Corporate Governance Structure

• Clear separation of executive and supervisory functions

• Reinforcement of supervisory authority and functions over executive functions

• Fairness in selection of outside directors and corporate auditors, and expansion of the roles and functions of outside directors and corporate auditors

• Active disclosure of information

1 Improve Internal Control Systems

• Improvement of internal checks and balances

• Appropriate management of business investments, subsidiaries and affiliated companies

• Prevention of fraudulent activities through improvements to human resource management systems

• Enhancement of internal audits

2 Review Compliance Systems

• Improvement of management team’s compliance awareness, and establishment of clear accountability

• Establishment of systems to support further reinforcement of compliance promotion

• Fostering of consistent awareness of compliance

• Improvement of Hotline Systems

3

determines, on the basis of these reports, that there

are no issues affecting the internal control systems.

Olympus established an internal project team with

the aim of achieving the removal of the “security on

alert” designation within one year. Over 100 people are

now working on radical reform projects designed to

strengthen all aspects of corporate governance.

Mar.

2012

Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Jan.

2013

Feb.–May

Internal system development period Internal system implementation period Reviewperiod

Implementation of improvement measuresIdentification

ofimprovement

measures

Submissionof internal

con�rmationdocument

System development

Regulations development

Schedule for Development of Internal Systems

7Olympus CSR Report 2012 Digest

Olympus CSR

Management Philosophy and Corporate Conduct CharterThe Olympus Group will help people to enjoy better health and happier lives by working as an integral member of society, by sharing its values, and by offering new values through its business activities.

Social IN

Contribution to Society through Business:

By providing needed value to society and producing profits through business

Contribution to Society through Other Voluntary

Activities: By investing in society and establishing a meaningful

relationship within it

Customers

BusinessPartners

Employees Shareholders

Localcommunities International

community

Economic, society, the environment

Fulfilling all obligations through compliance

with laws, regulations and business ethics

Social demandsand expectations

Duties andresponsibilities

to society

CS

R =

Dev

elop

men

t of

bot

h so

ciet

y an

d O

lym

pus

Through its CSR activities, the Olympus Group responds to the needs and expectations of society and fulfills its obligations and responsibilities. Olympus contributed to society in various ways even before it coined the phrase, “Social IN.” However, we believe we should do more. The business environment is constantly changing, and there is also gradual change in the social values that Olympus needs to share with society, and in our management and employees.

Our continuing existence in this environment of constant change, and our ability to help people achieve healthy and happy lives depend on the fulfillment of our responsibilities to various stakeholders, namely our em-ployees and their families, customers, business partners, shareholders, local communities and society.

Approach to CSR

As part of our efforts to raise awareness of compliance and pre-vent any recurrence of the problems, we have revised our man-agement philosophy, the Olympus Group Corporate Conduct Charter and the Olympus Group Code of Conduct.

We have not changed the fundamental ideals contained in our “Social IN” management philosophy. However, we have redefined the three “INs” that make up the “Social IN” system to achieve closer consistency with the Corporate Conduct Charter.

Our most important priority concerning the Corporate Conduct Charter is to ensure that it is used as guiding principles for the conduct of Olympus Group members at all levels from ordinary employees to senior executives. The Charter reflects

the social responsibility principles expressed in the latest inter-national guidelines, including the 2011 OECD Guidelines for Multinational Enterprises, the ISO 26000 (guidance on social responsibility), the 10 Principles of the United Nations Global Compact, and the 2010 revision of the Charter of Corporate Behavior of the KEIDANREN (Japan Business Federation).

We have also sought to ensure consistency between the Corporate Conduct Charter and the Code of Conduct, which was designed to provide employees with clear guidance on their day-to-day conduct based on the social responsibility principles stipulated in the latest international guidelines.

Olympus Group Corporate Conduct Charter and Code of Conduct

WEB Corporate Slogan “Your Vision, Our Future” http://www.olympus-global.com/en/corc/

profile/#vision

The Olympus Group strives to realize better health and happi-ness for people by being integral members of society, sharing common values, and proposing new values through its business activities. This “Social IN” concept is key to the basic Olympus philosophy underlying all our activities.

The Olympus Group’s Management Philosophy

Since 1994, the Olympus Group has regarded the “Social IN” management philosophy as the starting point for management thought. This means that we strive to realize better health and happiness for people by being integral members of society, sharing common values, and proposing new values through our business. The Olympus promise is encapsulated in the phrase “Your Vision, Our Future,” which was adopted in 2003 as an international corporate slogan. “Your Vision, Our Future” reflects the essence of Olympus, a determination to continue living as an active member of society, and realizing dreams in coopera-tion with society.

Management Philosophy and Corporate Slogan

Integrity in Society Creating Innovative Value Social Involvement

We aim to establish firm ties with society through INtegrity, INnovation and INvolvement.

The Olympus Group’s Management Philosophy

The CSR Concept of the Olympus Group

8Olympus CSR Report 2012 Digest

The Olympus Group established the following CSR-related basic policies, charter, and philosophy as the basis for thorough, group-wide implementation of measures corresponding to items in the Corporate Conduct Charter.

Guided by the fundamental concept of “Social IN” and a keen awareness of our responsibilities as a corporate member of society, and as a company on which diverse people with different cultures and value systems depend, the Olympus Group continues to

provide value to society by enhancing people’s lives through the products and solutions that we design and deliver.At the Olympus Group, we are committed to conducting our affairs with a strong sense of ethics, and accordingly, will strictly comply

with all relevant laws and regulations. We have revised the Olympus Corporate Conduct Charter to serve as the basis for making appropriate decisions and taking responsible actions. All members of the management team and all employees of the Olympus Group

hereby pledge to act in accordance with the new Corporate Conduct Charter in their global corporate activities.

Olympus agreed with and joined the UN Global Compact in October, 2004.

The Global Compact (GC) is a voluntary initiative to create a global framework within which companies can contribute to good corporate citizenship and sustainable growth through re-sponsible and creative leadership. GC signatories support and practice the ten GC principles, which relate to the protection of human rights, the elimination of unfair labor practices, protec-tion of the environment, and the prevention of corruption, and are required to make continuing efforts, based on commitments

WEB United Nations Global Compact http://www.unglobalcompact.org/

UN Global Compact

CSR-Related Philosophies and Policies

Medium-term business plan

Annual business plan

Management philosophy, Social IN

Company rules

Laws,regulationsand social

norms

Corporatevision

Daily business activities

Group Corporate Conduct Charter Basic policies

Group Code of Conduct

The Olympus Group Corporate Conduct Charter

CSR-Related Basic Policies, Charters and Philosophies

INtegrityIntegrity in

Society

❶ Adherence to High Ethical Standards

Information Disclosure PolicyInformation Security PolicyProcurement PolicyPersonal Information Protection PolicyHuman Rights and Labor Policy

❷ Respect for Human Rights

INnovationCreating

Innovative Value

❸ Delivering Innovative Value Quality Philosophy

Personal Information Protection PolicyHuman Rights and Labor Policy❹ Working Environments

with Vitality

INvolvementSocial

Involvement

❺ Harmony with the Environment Environmental Charter

Social Contribution Policy❻ Contribution to Society

by their own chief executive officers, toward the achievement of the Millennium Development Goals of the United Nations.

The principles of the Global Compact are incorporated into our Corporate Conduct Charter and Code of Conduct and re-flected in our business activities.

WEB Olympus Group Code of Conduct http://www.olympus-global.com/en/csr/olycsr/philosophy/csrcorporate/policy.jsp

Olympus’ Corporate Conduct Charter

1. Adherence to High Ethical StandardsWe will prioritize the spirit of compliance under any circumstances and will never tolerate any action that violates laws and regulations, social norms or internal rules.

We will create an environment within the organiza-tion where no concern pertaining to compliance will be ignored. Moreover, we will implement train-ing and provide guidance to all parties concerned.

We will consistently oppose any antisocial force or organization posing a threat to the order and safety of civil society and completely dissociate ourselves from any relation with them.

2. Respect for Human RightsIn all corporate activities, the Olympus Group will respect all internationally recognized human rights and will prohibit forced labor, child labor or discrimination based on race, beliefs, gender, age, social position, family lineage, nationality, ethnicity, religion or disability.

< INtegrity > (Integrity in Society)

3. Delivering Innovative ValueOlympus strives to play an integral role in help-ing people around the world lead healthier and more fulfilling lives. To enhance people’s lives, the Olympus Group will continue to offer innovative value.

To that aim, we constantly seek to provide safe, high-qual i ty products and services that en-gender loyalty and affection for our brand and that are meaningful to society, while taking suf-ficiently stringent measures to protect customers’ information.

4. Working Environments with VitalityThe Olympus Group wil l provide a safe and healthy working environment where individuality and diversity are respected and personal devel-opment is fostered. This environment will allow employees to strive for the highest level of skill and knowledge, and enable the innovative crea-tion of value sought by society.

We will aim to create working environments with a high level of transparency in management, to share information without seeking to hide or obfuscate unfavorable truths, and an atmos-phere in which free and vigorous discussion is encouraged.

< INnovation > (Creating Innovative Value)

5. Harmony with the EnvironmentRespecting the importance of people’s safety and health and the essential role of nature in support-ing their lives, the Olympus Group will contribute to a healthy environment and pursue sustainable development of society through business activi-ties and technological developments that are in harmony with nature.

6. Contribution to SocietyThe Olympus Group is always mindful of the impact our decisions have on stakeholders and society, and we will actively seek out the voices of stakeholders, including customers, business partners, shareholders, employees and commu-nities, and sincerely respond to their questions, concerns and needs.

The Olympus Group regards itself as a citizen in each of the communities where employees live and work, and we recognize the importance of supporting community organizations, programs and activities. Additionally, we will always respect the culture and practices of the countries and regions where the Group engages in business.

< INvolvement > (Social Involvement)

Adopted on June 20, 2012

Linkage to CSR Policies From Management Philosophy to Policies/Plans/Actions

9Olympus CSR Report 2012 Digest

General Meeting of Shareholders

Board ofCorporate Auditors

Auditors・Two statutory auditors (one of whom is external)・Two outside corporate auditors

Appointment/Dismissal

AuditSupervision Proposal

Audit

Reports &proposals

Accountingaudit

Instructions& advice

Executive Committee・Assist the President’s decision-making through participation in deliberations on important matters

Supervision

Business Execution

Appointment/Dismissal

Appointment/DismissalProposals regarding the appointment/dismissal of directors

Acc

ou

nti

ng

Au

dit

or

・Nominate Chairman, President, Director, and Auditor candidates

Nominating Committee

Board of Directors・Make decisions on important matters・Supervise the execution of business duties・Composed of majority outside directors

Compensation Committee・Develop director compensation proposals and compensation standards for executive officers

President and Representative Director

Chairman

Chairman

Chairman ofthe Board of Directors

ComplianceCommittee

By adopting an executive officer system, Olympus has estab-lished a governance structure which separates the functions of executive officers, who are responsible for the performance of business operations, and directors, who are responsible for management decision making and the supervision of the per-formance of operations. Based on lessons learned, Olympus has further clarified this separation of roles and strengthened its supervisory functions.

Six highly independent outside directors make up the ma-jority of the 11-member Olympus Board of Directors. In princi-ple, the Board of Directors meets once a month to allow timely decision making on important aspects of management, such as management strategies. It also effectively supervises the performance of business operations by executive officers. The Chairman, who cannot be the President, serves as Chairman of the Board of Directors. Independence and objectivity are key requirements for the nomination of outside directors. Individual directors apply their expertise to the management of Olympus through the decision making and supervisory activities of the Board of Directors. Upper limits have been set for the terms of

office and ages of the President and senior executive managing officers. In principle, the term of office for the President will be six years.

In addition, we have voluntarily established the Nomination Committee and Remuneration Committee as independent com-mittees on which the majority of members are outside directors. These committees nominate candidates for the posts of chair-man, president, directors and corporate auditors. They also set remuneration standards for directors and executive officers.

To ensure that audits are conducted fairly, Olympus has invited a person from outside the Olympus organization to become one of its two Standing Corporate Auditors, in addition to the two Outside Corporate Auditors. We have also created the Office of Auditors and assigned full-time staff to assist the Corporate Auditors in the performance of their duties.

Like the Board of Directors, the Corporate Auditors normally meet once a month. They attend important meetings, including board meetings, and have regular discussions with directors and executive officers. Of particular importance are their quar-terly exchanges of views with the representative directors. The

Corporate Auditors also collaborate and share information with the accounting auditors.

Corporate Governance Structure

Strengthening the Functions of the Corporate Auditors and Board of Corporate Auditors

* The two outside corporate auditors are independent directors as defined in the Securities Listing Regulations of the Tokyo Stock Exchange.

Olympus CSR

CSR ManagementOur initiatives toward the realization of the “Social IN” management philosophy and an increased emphasis on CSR include a review of our corporate governance systems, the establishment of the CSR Committee, and the improvement of our risk management structures. We are strengthening our corporate governance systems with the aim of preventing any recurrence of the financial improprieties.(This section includes information about changes to corporate governance systems and steps taken to strengthen governance since March 31, 2012.)

* The six outside directors are independent directors as defined in the Securities Listing Regulations of the Tokyo Stock Exchange.

Officers

Chairman .......Yasuyuki Kimoto

Representative Director/ President .......Hiroyuki Sasa

Director ..........Hideaki Fujizuka

Director ..........Yasuo Takeuchi

Director ..........Shigeo Hayashi

Outside Director .... Takuya Goto

Outside Director .... Shiro Hiruta

Outside Director .... Sumitaka Fujita

Outside Director .... Motoyoshi Nishikawa

Outside Director .... Hikari Imai

Outside Director .... Kiyotaka Fujii

Corporate Governance Structure (Extract)

Corporate Auditors

Standing Corporate Auditor ....... Takashi Saito

Standing Corporate Auditor ....... Masashi Shimizu (non-Olympus)

Outside Corporate Auditor ........ Nobuo Nagoya

Outside Corporate Auditor ........ Katsuya Natori

10Olympus CSR Report 2012 Digest

Improvement of Internal Control SystemsOlympus is improving various functions of its internal control systems.

● In addition to clarifying the roles of head office units, we have also strengthened internal checks and balances by revis-ing decision-making regulations and rules concerning the submission of matters for approval or deliberations by the Executive Committee, and by taking steps to ensure the con-sistent application of these rules.

● We have established an integrated management structure for the supervision of subsidiaries and business investments and clearly identified the parties responsible for the administration of subsidiaries. We will conduct regular monitoring based on

these rules. ● To prevent inappropriate actions, we have established a clear

demarcation of tasks in the relevant areas of activity, such as purchasing divisions and accounting and financial man-agement divisions. We have also established rules requiring the regular rotation of staff to prevent situations in which the same people are responsible for the same tasks over long periods of time.

● We have strengthened the internal audit organization and reviewed procedures. In the current fiscal year, approximately 180 subsidiaries have been audited. We are also taking steps to facilitate information sharing between the corporate audi-tors and external auditors.

Olympus has established a new CSR Committee to realize its “Social IN” philosophy by strengthening CSR company-wide.

The task of the CSR Committee is to spread and consolidate CSR activities throughout the Olympus Group by helping the President, who chairs the committee, to make decisions, and by promoting and monitoring the application of “the plan, do, check action” (PDCA) approach to all decisions.

Several promotion committees have been established under the CSR Committee. These work with the CSR Committee to study corporate policies, develop plans and promote their imple-mentation in the functional areas for which they are responsible.

Establishment of CSR Committee

CSR Committee

Information Security Promotion Committee

CSR Procurement Promotion Committee

Safety & Health and Ethical Conduct Promotion Committee

Risk Management Promotion Committee

Social Contribution Promotion Committee

Olympus is working to gain the understanding and confidence of all stakeholders, including shareholders and customers, by actively disclosing accurate corporate information in a fair and timely manner. Areas covered by disclosure include management

policies, financial data, the state of business activities, and CSR activities.

Disclosure

WEB Informaton Disclosure Policy http://www.olympus-global.com/en/csr/olycsr/

soundcorpo/informationpolicy/

Olympus has adopted the Olympus Group Information Secu-rity Policy and established the Information Security Promotion Committee to provide a group-wide organizational framework for measures to ensure information security. Security measures are implemented from the human, material, organizational and technical perspectives. Specifically, access to Olympus facilities is controlled using IC card systems. Corporate servers and PCs are protected from viruses and unauthorized access by means of automatically updated antivirus software, firewalls, quarantine systems, and antispam measures.

To raise employees’ understanding of information security issues, we have used the intranet to publish a security hand-book based on corporate rules, as well as educational materials, case studies and other information. We also provide e-learning programs for all executives and employees. Another initiative de-signed to raise awareness of information security is Information

Security Month. Lectures and other events are staged during this period to remind employees about the importance of information security. We also draw attention to information security through an active program of education and information activities during the year-end/New Year period.

Olympus handles stakeholders’ personal information us-ing appropriate methods and in accordance with the Olympus Group Information Security Policy.

Protecting Information

WEB Information Security Policy (Extract) http://www.olympus-global.com/en/csr/olycsr/

soundcorpo/protection/security.jsp

WEB Olympus Personal Information Protection Policy (an excerpt, translation)

http://www.olympus-global.com/en/csr/olycsr/soundcorpo/protection/privacy.jsp

Olympus has taken advantage of synergies with other business areas, such as microscopes (cellular tissue observation tech-nology) and surgical endoscopes (minimally invasive surgical equipment), to build an involvement in regenerative medicine and genomerelated business activities. Experts review activities in these fields from an ethical perspective at meetings of the Ethics Committee.

To improve transparency, we disclose the rules, member-ship list of the Ethics Committee, together with summaries of its deliberations.

Ethics CommitteeWEB Ethics Committee (including summaries of minutes)

http://www.olympus-global.com/en/csr/olycsr/soundcorpo/irb/

WEB List of Ethics Committee Members (Only in Japanese)

http://www.olympus.co.jp/jp/csr/olycsr/ soundcorpo/irb/member/

WEB Rules of the Ethics Committee (Only in Japanese)

http://www.olympus.co.jp/jp/csr/olycsr/ soundcorpo/irb/rules/

CSR Committee and Promotion Committees

11Olympus CSR Report 2012 Digest

In April 2012, Olympus appointed a Chief Compliance Officer (CCO) whose task is to clarify compliance-related responsibili-ties. The company also established a Compliance Committee chaired by an outside director to advise the Board of Directors on measures that can strengthen compliance activities on a global basis. The committee met for the first time on June 7, 2012. In principle, the committee will from now on hold four meetings per year.

On May 10, 2012, Olympus held a global compliance meet-ing for compliance officers from regional headquarters world-wide. The purpose of this meeting was to examine the global and regional implementation of compliance-related policies and measures, and to identify issues. In principle, we will continue to hold these meetings every quarter. Policies and measures put forward at the meetings will be implemented according to the organizational structure in each region. Within Japan, this role will be carried out by the Compliance Promotion Committee. Based on situations discussed and issues raised at the meet-ings, the CCO will regularly report to the Compliance Committee on the compliance situation of the Olympus Group as a whole.

Compliance Promotion Structure

Europe Americas Asia Japan

CSRCommittee

ExecutiveManagementCommittee

General Meeting of Shareholders

Compliance CommitteeMembers: Outside Directors,

Non-Olympus Members, CCO

Global Compliance MeetingMembers: CCO, Regional Compliance Of�cers

Board of Directors

President

Eachorganization

Reports &proposals

Reports &proposals

Instructions & advice

RequestsReports

CCO

Actions undertakenby the compliance organization

with each region

CompliancePromote

Committee

Compliance officers from Europe, the Americas, Asia and Japan at-tended the first global compliance meeting, which was held in Tokyo on May 10, 2012.

Olympus CSR

Encouraging ComplianceWe are determined to ensure that Olympus never makes the same mistakes again by strengthening systems to encourage compliance and fostering a corporate culture based firmly on compliance.(This section includes the compliance promotion measures implemented since March 31, 2012.)

Compliance Promotion Structure

Chairperson ......Motoyoshi Nishikawa (Outside Director)

Member ............Kiyotaka Fujii (Outside Director)

Member ............ Yoichiro Hamabe (Outside Committee Member, Attorney-at-law)

Member ............Masahito Kitamura (Chief Compliance Officer)

Compliance Committee Members

Date Main Agenda Items

June 7, 2012

• Election of Chairperson and Deputy Chairperson for the Compliance Committee

• Review of compliance initiatives, planning of future initiatives

September 10, 2012

• Report on second Global Compliance Meeting

• Review of compliance initiatives, planning of future initiatives

Compliance Committee Meetings (April–November 2012)

Date Main Agenda Items

May 10, 2012Tokyo

• Global compliance policies

• Global compliance management rules

July 30/31, 2012Pennsylvania, U.S.A.

• Review of operation of whistleblower systems in each region

• Review of compliance assimilation

September 26, 2012(Special meeting)Tokyo

• Global distributor management rules

• Compliance Focus Month events

November 27, 2012Hamburg, Germany

• Third-parties Compliance Management

Global Compliance Meetings (April–November 2012)

12Olympus CSR Report 2012 Digest

In the past, employees wishing to report issues in Japan could submit their concerns via a point of contact within the company using the Compliance Hotline. In May 2012, an external point of contact was established to allow employees to speak to an attorney outside of the company. This new system provides greater assurance of anonymity, since the attorney providing the service will never, without the approval of the whistle-blower, divulge any information that could be used to identify the indi-vidual to staff within the company. We have further enhanced the scheme, including the addition of clearly defined rules to the corporate regulations requiring follow-up action on all matters reported, and efforts to report all matters of concern. As a result of these measures, the number of reports in Japan has more than quintupled compared with the average for the period up to fiscal 2011. We will continue to strengthen compliance through further improvements to the system, and through continuing ef-forts to create a system that will be both useful and trusted.

Olympus has also expanded access to this system to in-clude employees of suppliers that deal directly with Olympus Group companies in Japan.

Integrity Hotline Systems

Compliance cards will be distributed to executives and employees in Japan.

We are further improving our compliance education as part of our ongoing efforts to transform Olympus into a company that will never again commit or overlook financial improprieties. Spe-cific educational activities are being planned and implemented in each country and region.

The following descriptions refer mainly to initiatives in Japan.

● CSR Education Cube Olympus bases its CSR education, including compliance edu-cation, on a concept known as the “CSR Education Cube.” The three axes of the cube are content, means and recipients. We provide various forms of education, including the distribution of the CSR Guidebook and Compliance Cards, e-learning activi-ties, and group training.

● Messages from and Dialog with Senior Management The importance of compliance is a constant theme in the Presi-dent’s speeches, intranet messages and messages from the CCO. Our efforts to ensure consistent compliance and create a free and open working environment also include regular town

Compliance Education

CSR Overview

Risk management

Compliance

Information security

CSR-based procurement

Handbook

Lectures, group training

e-learning

Education MethodsProposed in Block Unit

Recipients

Con

tent

Mea

nsCorp

orate

Govern

ance

Office

Promoti

on Com

mittees

All emplo

yees

/gene

ral

Emplo

yees

with

spec

ial ta

sks

Exec

utive

s/ran

k-ba

sed

Directo

rs

An Olympus employee who claimed to have been trans-ferred unfairly after using the Hotline Systems to report actions by a superior initiated a lawsuit seeking, among other things, acknowledgement that he was not obliged to work in the location to which he was transferred. On June 28, 2012, a supreme court appeal hearing resulted in the dismissal of an appeal lodged by Olympus. This ruling overturned the verdict of the Tokyo District Court,

which had dismissed the claim, and confirmed the judg-ment from a second hearing in Tokyo High Court, there-by bringing the series of legal actions to a conclusion.

As a company, we take the judicial ruling of the court very seriously, and we will apply the ruling to our future efforts.

* This matter was included in this report because of the confirma-tion of the verdict.

Litigation by Olympus Employee

In-house contact point External contact point

0

5

10

15

20

0

5

10

15

20(Calls)

(FY)

46

56

2 2

5

1

3 412

6

1st h

alf 2

007

2nd h

alf 2

007

1st h

alf 2

008

2nd h

alf 2

008

1st h

alf 2

009

2nd h

alf 2

009

1st h

alf 2

010

2nd h

alf 2

010

1st h

alf 2

011

2nd h

alf 2

011

1st h

alf 2

012

1st half: April 1–September 30, 2nd half: October 1–March 31

*The above totals include requests for legal advice.

Number of Hotline Reports and Inquiries

The CSR Education Cube

Note: Separate compliance and integrity Hotline Systems have been established in each region worldwide.

13Olympus CSR Report 2012 Digest

meetings for executives and employees. These events are also held regularly at affiliated companies and overseas subsidiaries.

● Rank-Specific EducationIn addition to its educational programs for all employees, Olym-pus also systematically implements training activities targeted toward personnel at specific levels, including educational pro-grams for management and executive personnel, personnel who have been promoted, and new employees.

● Function-Based EducationSpecialized, function-specific training, including attendance at lectures by outside experts and group seminars conducted by external organizations, is being provided for corporate staff whose tasks require higher levels of knowledge and awareness, such as employees staffing the Hotline, and members of the Compliance Promotion Committee.

In addition, we have implemented ongoing training pro-grams to educate relevant staff about laws and regulations relating to various aspects of our business, including CSR pro-curement, trade controls and the prevention of fraudulent trans-action practices.

● Education for All EmployeesOlympus implements educational programs covering all aspects of compliance, with particular emphasis on the Olympus Group Corporate Conduct Charter and Olympus Group Code of Con-

Period Attendees Summary

As required from April onwards All employees President’s message via intranet

April

Executives President’s presentationCCO’s presentation on compliance organization

Hotline contact point staff Seminar for Hotline contact point staff

Workplace representatives Meeting between Corporate Conduct Charter formulation task team and CCO

Progressively from April onwards Relevant divisions Trade-related education (seminars for each division)

MayAll employees E-learning about mental health

Compliance Promotion Committee CCO’s presentation

As required from May onwards Relevant divisions Divisional seminars about the prevention of fraudulent business practices

JuneAll employees

Environment-related e-learning (regulations on chemical substances)

E-learning about the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors

Executives President’s presentation

July

All employees E-learning about compliance

E-learning about information security/protection of personal information

ExecutivesLectures by outside expertsLecturer: Prof. Yoshinari Koyama of the Kanto Gakuin University College of EconomicsTheme: Corporate financial improprieties and compliance

As required from July onwards

Executives/employees Town meetings with President and CCO

August All employeesE-learning about AEO system (special export declarations)

E-learning about elimination of antisocial elements, prevention of insider trading, management of seals and signatures

SeptemberAll employees E-learning on Antimonopoly Act

New employees Education about management philosophy, Corporate Conduct Charter (group training)

October Management

Seminar presented by outside expertLecturer: Yoichiro Hamabe, Aoyama Gakuin University Graduate School of LawTheme: Specific Legal Obligations of Corporate Officers—the Need for Internal Control Systems, the Era of CSR

November

All employees E-learning on prevention of insider trading

Executives Compliance workshop for divisional managers

Promoted employees Education about management philosophy, Corporate Conduct Charter (group training)

Jurisdictional Category Name of Law/Regulation, etc.

Japanese laws and regulations /

Internal rules

• Act on Prohibition of Private Monopolization and Maintenance of Fair Trade (Antimonopoly Act)

• Unfair Competition Prevention Act• Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors (Subcontracting Law)

• National Public Service Ethics Act, code of ethics for public servants

• Fair competition rules• Prevention of insider trading

Overseas laws and regulations

• Laws and regulations relating to bribery• Laws and regulations relating to unfair competition

• Laws and regulations relating to antisocial elements

duct. There are also programs for corporate officers and all em-ployees concerning specific laws, regulations and social norms.

Specific aspects of laws and regulations have been identi-fied for prioritized educational initiatives to strengthen knowl-edge and awareness.

Laws/Regulations Targeted for Prioritized Compliance Reinforcement Efforts

Main Compliance Education Activities in Japan (April–November 2012)

Note: The above activity is limited to Japan. Local activities will be devel-oped at each regional headqurters.

14Olympus CSR Report 2012 Digest

The Olympus Response to the Great East Japan Earthquake

We wish to offer our sincere prayers for the speedy recovery of everyone affected by the Great East Japan Earthquake, and for an early return to normality in the disaster areas.

As a company involved in the healthcare field, our first priorities after the earthquake were to repair damaged medical equipment and resume supplies of medical equipment.

In addition to donations of money and products, we also recruited employee volunteers to help with recovery and relief efforts in the disaster areas.

Disaster Recovery Activities by the Olympus Group

We regret the inconvenience caused to our cus-tomers by the suspension of manufacturing and repair operations after the earthquake. Olympus continually issued information about the situa-tion and did everything possible to minimize the impact. We will continue to do our utmost to meet the needs of our customers.

We regularly implement drills relating to employee safety, systems to confirm employee safety and whereabouts, and our business continuity plan (BCP). At all Olympus business sites through-out Japan, including the Shirakawa Plant Aizu Olympus in Fukushima Prefecture and Aomori Olympus in Aomori Prefecture, only one employee suffered a minor injury. However, there were fatali-ties among members of employees’ families. We wish to offer our sincere condolences and prayers.

Human Losses

Quake soil liquefaction damage in the parking lot at the Shirakawa Plant

A collapsed ceiling at the Shirakawa Plant

Special Feature

Main Damage Suffered by the Olympus Group

Immediately after the earthquake, a central response headquarters with subsidiary functional teams and local response organizations was established under the leadership of the President. The initial priorities as this organization began to respond to the disaster were to ensure the safety and health of employees, prevent further damage, maintain business continuity, and gather and send out information. The head-quarters organization confirmed the well-being of all employees in the Tohoku and Kanto regions through the safety confirmation system and directly traced some individuals.

In the Tokyo area, approximately 600 employees were unable to return to their homes. Therefore, stockpiled emergency food and water were distributed to them.

Earthquake, Initial ResponseAt 14:46 on March 11, 2011

On March 14, inspection began of buildings at the Shirakawa Plant, where there was substantial damage. Units responsible for the sup-ply of parts to affiliated companies and repair and service divisions resumed operations on March 16. Steps were also taken to secure lo-gistics channels to the disaster area, to ensure the safety of employees at manufacturing sites and sales offices in the Tohoku region and to help them rebuild their lives. As a measure to deal with power outages, flexible working arrangements were introduced.

Responding to Various SituationsMarch 14, 2011–

At the Shirakawa Plant, service divisions became fully operational on April 4 and production lines were progressively reinstated from April 5 onwards. By April 11, all operations had been fully restored. Meanwhile, it was necessary to cope with the effects of scheduled power cuts. Continuing interruptions to the flow of parts and other items from suppliers became a major business continuity challenge. Therefore, manufacturing sites made efforts to avoid the use of items affected by delivery interruptions. This was achieved by replacing outsourced parts with items produced in-house, by using equivalent alternative items, or by modifying designs. By the end of April, the re-sumption of full production operations was in sight.

Full Operations ResumedApril 11, 2011–

Since Olympus was on track to the resumption of full production operations, the responsibility for disaster response initiatives was transferred from the central response headquarters to individual units. However, because the delayed parts supply continued to affect production operations, manufacturing sites implemented measures to achieve their production targets, such as rescheduling their sum-mer holidays. New business continuity issues were also identified as a result of the March earthquake. We will continue to strengthen our business continuity planning, which we regard as a corporate social responsibility, while always giving first priority to the safety and health of our employees.

From Disaster Recovery to Business ContinuityMay 13, 2011–

Disaster Recovery Efforts, Reinforcement of Business Continuity Systems

There was partial damage to office buildings in the Sendai area. However, there was no interruption to services, including our capacity to respond to customer inquiries. Seven mobile phone shops in the ITX Group* were damaged and subsequently closed. Damage to production facilities was espe-cially severe at the Shirakawa Plant. Both buildings and infrastructure, including water and gas pipes and electrical systems, were affected. However, the value of ongoing disaster-prevention efforts was proven by the fact that only one manufactur-ing facility was destroyed.

Damage to Facilities

* The ITX Group was transferred to Japan Industrial Partners, Inc. on September 28, 2012.

15Olympus CSR Report 2012 Digest

Review of and Changes to Business Continuity Plan

Our efforts over several years to develop our business conti-

nuity plan (BCP) were very effective in minimizing damage to

buildings and equipment. However, other issues were identi-

fied, including the disruption of supplies from parts manufac-

turers. As a result of the earthquake disaster, we are revising

our BCP to ensure the early resumption of operations after

disasters. There will be no change to our basic BCP policy,

which is to give first priority to the prevention of loss of life

and injuries, to fulfill our social responsibilities, and to give due

consideration to corporate earnings and shareholder value.

Our aim is to clarify the roles and responsibilities of disaster

response teams and strengthen their functions.

We will also strengthen other aspects of the BCP, includ-

ing the staging of simulation drills based on disaster scenari-

os, and assembly drills for disaster response teams based on

scenarios in which disasters occur on holidays or at night.

Strengthening Disaster Preparedness Systems

Using the experience gained in dealing with the effects of the

earthquake, we identified the types and quantities of stocks

required at each plant and reviewed our disaster stockpiling

standards. On this basis, we are redistributing stockpiles in

readiness for future disasters.

Having established earthquake-resistance guidelines

for company buildings from a BCP perspective, we are now

conducting earthquake-resistance inspections at each site

and taking the necessary steps, including the development of

plans for antiseismic reinforcement, based on the results of

these checks.

During the disaster we were able to confirm the effective-

ness of our systems for checking the safety and whereabouts

of personnel. Furthermore, we are determined to ensure all

personnel have a thorough and consistent knowledge of the

methods used so that the systems can be used and imple-

mented reliably, and we will continue to hold disaster evacua-

tion drills and other activities for this purpose. Function Changes (summary)

Common functions

We have established earthquake-resistance guidelines for company buildings from a BCP perspective. We will also implement safety measures, including measures to prevent ceiling collapses, in all new and existing buildings.

Procurement We have implemented new procurement-related measures based on additional scenarios, in which supplies from suppliers are disrupted by disasters. Measures include the procurement of parts, etc., from multiple suppliers, and strategic stockpiling.

Manufacturing We have confirmed the effectiveness of existing measures to prevent production facilities from toppling. Moreover, we will continue our efforts to strengthen these measures.

Logistics We have taken steps to prevent items from falling in product storage facilities.

Strengthening Business Continuity Systems

Special Feature The Olympus Response to the Great East Japan Earthquake

Responding to Electric Power Demand

In the summer of 2011, the government responded to power short-ages resulting from the Great East Japan Earthquake by issuing restrictions on power use in the service areas of Tohoku Electric Power and Tokyo Electric Power under the provisions of Article 27 of the Electricity Business Act.

We implemented a range of measures throughout the Olympus Group in Japan, including curbs on air conditioner use and a review of temperature settings. The spacing between working light fixtures was expanded, and unnecessary lights were switched off, and we

also extended the summer vacation period to avoid the peak power demand period. Olympus companies also brought forward the start date and extended the finish date for the “Cool Biz” program, which allows employees to wear light clothing in summer. We replaced computers and multifunction printers with more energy-efficient models and adjusted settings to minimize power consumption. The numbers of elevators, drink vending machines, water heaters and tea machines in use were also reduced. Individual sites implement-ed additional measures based on their local situation.

Fortunately no Olympus employees suffered serious injuries in the Great East Japan Earthquake, and we were also able to minimize damage to our facilities and equipment. While these outcomes confirmed the effectiveness of our business continuity planning, we also became aware of areas in which improvements are needed, especially logistics, supplies of purchased items, and support for sales and service sites. In addition to our efforts to develop and strengthen systems within our facilities, we also need to establish structures to ensure the non-disruption of services. I believe that we can achieve this by fostering stronger relationships of trust with our suppliers, and by taking steps to ensure safety and business continuity at our sales and service sites. I see the improvement of our busi-ness continuity planning as essential to the fulfillment of our social responsibilities as a company capable of re-sponding to the needs of all stakeholders.

VOICE

Building Systems to Prevent Disruptions to Customer Services

Tetsuo KobayashiGeneral Manager, Risk Management DivisionFormer Coordinator, Central Response Headquarters

16Olympus CSR Report 2012 Digest

Earthquake Recovery Initiatives by Olympus Group Companies

A medical facility and endoscopic equipment after inundation during the disaster

Results: Endoscope systems totally destroyed at 25 facilities Endoscope systems inundated at 16 facilities Endoscope systems damaged (excluding systems destroyed or

inundated) at one facility (23 buildings destroyed, 38 inundated)

As part of our efforts to maintain the availability of endoscopes in all areas, we lent replacement systems free of charge and carried out re-pairs at specially reduced prices. Normally we would not repair endo-scopes that have been inundated in seawater. As an emergency meas-ure, however, we inspected systems and provided a special free repair service for equipment that was deemed to be repairable, on condition that no further repairs would be carried out in the future. Other initia-tives included the loan of microscopes to Shizukawa Hospital, which had resumed medical treatment at a temporary clinic.

A loan micro-scope in use at a temporary clinic

Support for Non-Medical Equipment

Special repair services were provided for repairable digital cameras, film cameras, digital recorders and other personal products. In the life science field, we visited customers in the Tohoku region that had purchased confocal laser scan-ning microscopes, which consist of large pieces of equip-ment requiring very precise adjustment. The equipment was inspected free of charge.

Support Activities in the Healthcare Sector

Special Feature The Olympus Response to the Great East Japan Earthquake

Widespread damage to medical institutions in the Great East Japan Earthquake had a serious impact on medical care for patients. Olympus Medical Science Sales Co., Ltd. (OMSJ), which is responsible for sales, repair services and customer support in the areas of medical equipment and life science and industrial equipment, helped facilities damaged by the earthquake to resume medical services as quickly as possible.

Results of Visits and Assistance to Disaster-Affected Facilities

Establishment of System to Provide Customer Support after Earthquakes

OMSJ branches and sales offices in Iwate, Miyagi and Fukushima Prefecture were damaged in the Great East Japan Earthquake. There was also damage to employees’ homes, some of which became unin-habitable. The first priority for OMSJ was to check the status of its em-ployees and their families and ensure their safety. The company next inspected damage to its facilities and started to gather information.

EarthquakeMarch 11, 2011

In addition to the disruption of lifeline services, including electric power, water and city gas, people in the disaster areas also experienced shortages of food and gasoline. This situation had a major impact on the company’s business activities and the lives of its employees.

While the telephone became the main means of providing cus-tomer support, OMSJ staff improvised a number of other ways to improve services. For example, they checked the fuel tanks of all busi-ness vehicles and transferred gasoline into the vehicles with the most fuel remaining, which were then used to provide emergency support to users. Staff then began to visit medical institutions, always making safety their first priority.

Start of Customer Support ActivitiesMarch 14, 2011–

Road repair work continued, and gasoline shortages were also gradu-ally alleviated. An 18-member team consisting of 10 field service personnel from the Tohoku Service Group and eight field service sup-port workers from the Kanto region began to visit all of the more than 1,200 customers in the disaster areas. By the end of April all facilities in Miyagi and Fukushima Prefecture (excluding those in the exclusion zone) had been visited, while visits in Iwate Prefecture were completed by May 12. During these visits, staff checked equipment for damage and inspected endoscopes.

Start of Visits to All FacilitiesMarch 22, 2011–

As a result of our experience in visiting damaged facilities and inspect-ing equipment, we established customer support guidelines requiring the completion of visits to all affected facilities within one month after a disaster. We also prepared a manual containing procedures for the im-plementation of these guidelines, including the development of a plan for visiting customers, and the establishment of inspection and support systems.

I experienced the Great East Japan Earthquake in Yokohama, where I was stationed at the time. Although I was not injured myself, I felt a profound sense of shock at television images that I saw. I was eager to contribute my limited abilities to recovery efforts in the disaster areas, so I went to the Morioka Sales Office and began to provide assistance as a field service worker. I saw medical facilities where staff continued to treat patients, even though their endoscopes had been crushed and water was leaking through the ceilings. The experience left me speechless. However, when people in the facilities thanked me for coming all the way from Kanto to check their equipment, I realized that I could contribute as a service per-son. Some of the medical professionals I met are still living in evacuation centers and tem-porary housing, yet despite their own difficulties, they are still working hard to help their patients. I want to do everything I can to support those people.

VOICE

Lessons Learned from Customer Support Efforts

Aguri Takasugi Osaka Service Group, Service DivisionOlympus Medical Science Sales Co., Ltd.

17Olympus CSR Report 2012 Digest

Removing debris Wakuwaku Science Workshop A letter from a schoolchildSuisen Road after voluntary restoration work

Many Olympus employees took part in voluntary recovery

support activities in areas affected by the Great East Japan

Earthquake. A total of approximately 200 volunteers traveled

to the disaster areas between May 16 and June 17, 2011,

and between September 26 and October 28. Each group

spent four nights and five days away, departing on Monday

and returning on Friday. With the cooperation of the RQ

Citizens Disaster Relief Network*1, the volunteers helped

clean up homes and farms, remove debris, and clear away

vinyl greenhouses that had been wrecked by the tsunami in

Ishinomaki City and Kesennuma City, Miyagi Prefecture. Other

activities included participation in a project to restore Suisen

(Daffodil) Road*2. People in the disaster areas were very

pleased to see groups capable of organized activities during

periods when the number of general volunteers tended to

decline, such as after the Golden Week public holiday period

and after the end of school summer holidays.

Olympus provided employees with opportunities and

places to participate in voluntary activities and granted special

paid leave. It also arranged transport, accommodation and

meals, supplied safety equipment, including dust masks and

safety insoles, and organized orientation seminars to inform

volunteers about safety and special precautions when dealing

with victims. Olympus considered both the needs of victims

and also the mental and physical health of the volunteers. For

example, all volunteers underwent health checks by industrial

physicians before and after the trips and were given oppor-

tunities for physical and mental recovery afterwards, includ-

ing sessions at which volunteers recounted and shared their

experiences.

On June 14 and 15, Olympus employees voluntarily ran

Wakuwaku Science Workshops*3 for approximately 80 el-

ementary and junior high school students at evacuation facili-

ties and volunteer centers in Ishinomaki City. More Workshops

were held between November 6 and 10 for the benefit of ap-

proximately 900 elementary and junior high school students

evacuated from the exclusion zone around the Fukushima

Daiichi Nuclear Power Station. These hands-on events had

themes relating to light and lenses, which are fields in which

Olympus has considerable expertise. Participants were able

to experience the fun of science through activities that includ-

ed the use of a camera obscura to learn how camera lenses

work and the creation of kaleidoscopes using spectroscopy

and diffraction. The students also studied and operated en-

doscopes and used microscopes to learn about the micro-

level world.

*1 RQ Citizens Disaster Relief Network

*2 The Suisen Road Restoration ProjectLocated in the Koizumi district of Motoyoshi-cho in Kesennuma City, Suisen Road (Daffodil Road) is approximately 1.5 kilometers long. A community development group planted daffodils along the road, which became a focus for community activities, and a daffodil festival was held. Sadly, the area was devastated by the tsunami. Local residents suggested that the restoration of Suisen Road would help to bring the community together, and the project was launched with the aim of revitalizing the community by restoring daf-fodil flowers to the area.

*3 Wakuwaku Science Workshops (Only in Japanese)

WEB http://www.rq-center.net/en/home-en

WEB http://www.olympus.co.jp./jp/event/wakuwaku/

WEB Other support initiatives http://www.olympus-global.com/en/csr/social/contribution/disaster/

In addition to monetary donations and the arrangement of vol-untary activities, Olympus is also contributing to recovery efforts in areas affected by the Great East Japan Earthquake through its support for NPOs involved in recovery initiatives.

Leading photographers, including Bruce Osborn and Taishi Hirokawa, wanted to use the power of photography to help families whose photo albums had been lost, parents and children trying to make a new start in the face of tragedy, and children separated from friends and family. They hoped that by sharing their knowledge with young people in the disaster areas they could help those affected to move forward to a new tomorrow. This led to the I TIE☆Aitai—“Oyako Day” support project for areas affected by the Great East Japan Earthquake. (“Aitai” is Japanese for “I want to see you,” while Oyako (parent-child) Day celebrates the bonds between parents and children.) This initiative consisted of photography workshops for junior and senior high school students who had experi-

I TIE☆Aitai—“Oyako Day” Support Project for Disaster AreasTOPICS

Recovery Support Activities by Employee Volunteers

enced the earthquake. Olympus support in-cluded the donation of 30 Olympus XZ-1 high-pe r fo rmance d ig i t a l cameras. Olympus also donated digital cameras, digital recorders and used notebook PCs and loaned tents to various organizations involved in recovery support activities, including the international cooperation organization Peace Boat, Oxfam Japan and the RQ Citizens Disaster Relief Network.

Special Feature The Olympus Response to the Great East Japan Earthquake

WEB I TIE☆Aitai—“Oyako Day” support project for areas affected by the Great East Japan Earthquake (Only in Japanese)

http://i-tie.jp/

18Olympus CSR Report 2012 Digest

Customers

Usabilityevaluation

Quality andEnvironment

Analysis Center

Inquiries Proposals Comments

Discussions inrelevant departments

ShowroomsCustomersupportcenters

E-mailHPCommunication by Telephone

Face toFace

Reflecting customer comments in products and services

Approaches to provide products that can earn customers’ satisfaction

Require-ments

Marketing departments and sales companies in Japan

Overseas subsidiaries and agents

New products and services reflecting customers’ comments

Marketing and salesDevelopment and designing

Planning

Olympus can only create value through its activities when its products and services are useful and provide value to its customers. Our commitment to group-wide quality assurance reflects our determination to provide products and services that will earn the confidence and trust of our customers.

Quality Philosophy

Medical systems

We help customers to use our products safely and with confidence by responding to technical inquiries, such as requests for explanations about operating methods and assistance with problems.

We are continually enhancing our ability to provide prompt assistance. For example, when necessary we can send field service personnel to solve customers’ problems in clinical facilities.

Microscopes

To ensure an efficient response to customer inquiries and the timely resolution of problems, all telephone and mail inquiries are managed centrally in our support center.

Customers who make inquiries are advised about microscopy seminars provided by Olympus for customers. This information is also available on our website.

Imaging

Olympus responds to customer inquiries on weekends and public holidays during the same hours as on normal business days. This service is available every day except system maintenance days and the year-end/New Year period.

In addition to training in communication skills and product knowledge for telephone staff, our efforts to raise customer satisfaction levels also include “mystery caller” surveys conducted by an outside organization.

For Customers

We gather information through marketing research and by lis-tening to the comments and views of users of Olympus prod-ucts. This customer input is then applied to our manufacturing activities.

Customer-Focused Manufacturing

We accurately assess the quality of all products using quality assurance systems that meet international certification re-quirements. This focus on product quality begins with quality assessments at the development stage, which is the starting point for manufacturing. Our products undergo various in-house checks, including electromagnetic compatibility (EMC) tests, safety tests, us-ability assessments, environ-mental tests, and materials analyses.

One of the ways in which we work to achieve customer sat-isfaction is by maintaining systems that allow us to respond promptly to inquiries and provide timely repair services on the rare occasions that faults occur. Olympus is continually im-proving its capabilities in this area. Another service that helps to build customer confidence in our products is the publica-tion of important information for users on our website.

Development-Stage Initiatives

Customer Support Systems

EMC testing in a 10 m wave anechoic chamber

WEB CSR Activities—For Customers http://www.olympus-global.com/en/csr/

customer/

More detailed information can be found on our website.

Quality Philosophy1. Realization of genuinely world-class “Total Quality” in

all aspects of the organization.

2. Provision of the highest quality products and services to customers.

Core Principles(1) All actions to reflect a customer-oriented approach.

(2) Develop “Win-Win” relationships with all partners.

(3) Be disciplined in following the appropriate proce-dures and, in day-to-day operations, continuously strive for improvement, avoiding complacency.

Design and Manufacturing Reflecting Customers’ Comments

Customer Support Systems by Product Category

19Olympus CSR Report 2012 Digest

The Olympus Group’s Procurement Policy

The Olympus Group’s Procurement Policy (Extract)

1. Compliance with Laws, Regulations, and Social Norms

2. Green Procurement and Consideration for the Environment

3. Promotion of Fair and Impartial Trade

4. Selection of Suppliers

5. Reinforcement of Partnership with Suppliers

6. Prohibition of Acceptance of Private Interests

We held our first CSR procurement briefing for suppliers in fiscal 2010. With the cooperation of suppliers, we also com-menced on-site checks focusing primarily on regulatory compliance but also covering such aspects as human rights, labor, safety and health and the environment. These activities continued in fiscal 2011, when we again held a briefing for suppliers and conducted on-site checks.

In addition, the CSR Procurement Committee continues to meet regularly to formulate activity policies and review ac-tivities relating to CSR procurement by the Olympus Group.

All contracts relating to our supply chains include clauses pro-hibiting transactions with antisocial elements and unfair busi-ness practices. Furthermore, we regard the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors as key legislation in relation to our purchasing activities. We provide thorough training about this law as part of our efforts to ensure full compliance.

CSR Procurement

Compliance Activities

Request to Suppliers (Extract)

1. Compliance with Laws, Regulations, and Social Norms

2. Health & Safety

3. Fair and Impartial Trade

4. Ensuring Quality and Safety, Delivery, Fair Pricing, and Stable Supply

5. Environmental Considerations

6. Ensuring Information Security and the Appropriate Protection of Information

7. Promoting Social Contributions

8. Promoting CSR Activities Internally and Among Suppliers

Action∙ CSR Procurement Promotion Committee

∙ Web-based surveys, analyses and assessments of audit results

∙ Formulation of policies for next phase of activities

Do∙ CSR procurement brie�ngs

∙ Formulation and implementation of training and education programs for auditors

∙ Management education

Plan∙ Proposal of CSR activity plans

∙ Amendment and publication of “Request to Suppliers”

∙ Establishment of rules for CSR audits

Check∙ Web-based surveys of companies (CSR)

∙ Checks of suppliers’ sites

PDCA Cycle for CSR Procurement

Our approach to business is based on compliance with all relevant laws and regulations, respect for human rights and the environment, fair and open transactions, and the strengthening of partnerships with suppliers.

For Suppliers

WEB CSR Activities—For Suppliers http://www.olympus-global.com/en/csr/

procurement/

More detailed information can be found on our website.

20Olympus CSR Report 2012 Digest

Olympus has established a range of leave and welfare pro-grams to help employees to enjoy fulfilling lives with their families and in their communities. These include the Welfare Cafeteria Plan and the Refresher Plan for people in their sev-enth and 20th years of continuous employment. There is the Pension Life Plan (PLP) seminar scheme, under which employ-ees who have reached the age of 55 have the opportunity to attend seminars about retirement lifestyles while staying in a resort hotel. Other welfare programs introduced by Olympus include paid leave for voluntary activities, childcare and family care support systems, as well as a system that allows employ-ees to set their own reduced working hours during pregnancy.

Olympus provides equal opportunity for male and female employees. We also employ a wide range of nationalities and actively create job opportunities for people with disabilities. We have also introduced a reemployment scheme for retirees. In fiscal 2011, a total of 53 people opted to continue working after reaching retirement age.

Based on this overarching policy, we have introduced the Management by Object system (MBO-S) of goal manage-ment and assessment. Under this system, each employee independently chooses a theme for his or her work and skill development activities, then plans and implements work goals based on that theme in consultation with his or her supervisor. This approach not only encourages growth, but also ensures that employees are treated fairly on the basis of a system that they understand and accept. We also help employees to develop their skills through the Olympus College educational system, as well as through training programs for advanced technicians and engineers.

Workplace safety and health are a priority for Olympus, and we aim to provide workplaces in which every employee can work with confidence. We work in cooperation with the health insurance association to support employees’ efforts to improve their health by offering a full range of health check options, as well as access to advice on lifestyle improvement and mental health.

Human Rights and Labor Policy Creating Motivational Working Environments

Diversity and Opportunity

Employee Skill Development

Safety and Health, Health Promotion

Childcare

Leave of absenceWithin one year, up to the child’s second birthday (may be extended for an additional six months in special cases) 39 employees used this system in FY2011.

Reduction of working hours

2 hours until the end of April in the child’s first year of elementary school 1 hour until the end of April in the child’s fourth year of elementary school

Exemption from overtime work Until the child’s third birthday

Exemption from overtime and night-time work

Until the end of April in the child’s fourth year of elementary school

Nursing care leave

The following numbers of paid leave days until the end of March in the year when the child starts elementary school (adjusted according to the number of children)1 child: 5 days per year 2 or more children: 10 days per year

Number of female executives 12 (at section manager level or higher)

Number of non-Japanese executives (as of June 2012)

Olympus Medical Systems Corporation: 2Olympus Imaging Corporation: 1

Employment ratio for people with disabilities (as of March 2012)

1.82% (total for seven companies in the special-purpose subsidiary group)

Olympus is actively striving to create a working environment where every employee can realize his or her full potential. By respecting human rights, diverse values and individuality, we aim to develop vibrant human resources and maintain an or-ganization with vitality.

In October 2004, Olympus joined the UN Global Compact by officially stating its determination to support and implement the universal principles regarding human rights and labor. In March 2005, the new Olympus Human Rights and Labor Policy was formulated for group-wide implementation to send a strong message of respect for human rights to all employ-ees in the Group.

Item FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

Work-related accidents resulting in lost work time 6 5 2 5 9

Work-related accidents not resulting in lost work time 15 20 17 11 9

Total 21 25 19 16 18

(Number of cases)Number of Occupational Accidents

Olympus aims to provide a good working environment for its employees by respecting human rights, and by creating workplaces in which individuals can work to achieve growth both for themselves and for the company. Our efforts to provide safe and amenable working environments include compliance with laws and regulations in Japan and other countries, and the application of our policies to overseas subsidiaries in ways that reflect local conditions.

For Employees and Their Families

WEB CSR Activities—For Employees and Their Families http://www.olympus-global.com/en/csr/

workplace/

More detailed information can be found on our website.

Childcare Support System

21Olympus CSR Report 2012 Digest

Recognizing the vital importance of water to all living things, including wildlife and human beings, Olympus has created a voluntary environmental program focusing on water circula-tion in forests, rivers and oceans. We continually carry out a variety of theme-based programs throughout each year. In fiscal 2011, we launched the Oceans for the Future Project in collaboration with the Oceanic Wildlife Society (OWS), a non-profit organization. The aim of this initiative is to encourage elementary and junior high school children to think about the preservation of marine environments for future generations.

Through the Wakuwaku Project (literally “exciting project”), Olympus is encouraging children to take an interest in sci-ence through science workshops. The workshops are run by volunteers, most of whom are Olympus employees. Olympus is also a co-sponsor of the Natural Science Observation Contest, which was first held over half-a-century ago in 1960. Organized by the Mainichi Newspapers and the Society of Scientific Photography, the contest helps to foster scientific curiosity by encouraging children to discover their own answers to questions that inter-est them.

In February 2007 Olympus launched the Brave Circle Campaign to eradicate colorectal cancer. The aim of the campaign is to encourage people in the target age group of 40 and older to undergo diagnostic checks. These activities are promoted by the Brave Circle Steering Committee, which in July 2009 became a special non-profit organization (NPO). The campaign has since grown into a public service initiative involving the participation of many companies and organi-zations. As a full member of the NPO, Olympus actively supports colorectal cancer diagnosis and educational activities in cooperation with government agencies.

Olympus is using the power of photography in educational activities designed to spread awareness of the Millennium Development Goals (MDGs). These goals for the international community include the eradication of poverty and hunger.

In 2009 and 2010, we held photographic contests on the theme of the MDGs in collaboration with the United Nations Development Programme (UNDP) and the AFP Foundation. We also staged exhibitions of the winning entries in locations around the world. In June 2011 the photographs were also displayed at a follow-up meeting hosted by the Ministry of Foreign Affairs and the UNDP. In addition, a panel display of the winning entries was presented at various ports of call on

Olympus Social Contribution Policy

The Global Environment

Natural Science

Medicine and Health

Culture and the Arts

Olympus Social Contribution Policy (Extract)

∙ Olympus will contribute to the enhancement of the quality of life on various levels, from local communities to the global environment, by actively utilizing its management resources, including technologies gained through business activities and human resources, in non-business areas.

∙ This Social Contribution Policy applies to all Olympus group companies globally.

∙ Olympus will strive to establish systems and develop a corporate culture under which individual employees can take pride in their status as members of the Olympus Group, while contributing as private citizens through their own voluntary activities.

∙ Olympus will actively contribute to society, especially in the four areas, namely, medicine and health, culture and the arts, the global environment, and natural science.

A talk event organized as part of the Tokyo Health Walk

world cruises organized by Peace Boat, a non-governmental organization involved in international exchange.

Children take part in the coastal photography and craft classes organized as part of the Ocean Legacy Project.

A poster inviting entries for the 53rd contest

Olympus will continue to help people to enjoy better lives by using management resources gained through business activities, such as technology and human resources, in a variety of non-business situations.

For Society

WEB CSR Activities—For Society http://www.olympus-global.com/en/csr/social/

More detailed information can be found on our website.

22Olympus CSR Report 2012 Digest

Olympus Group Environmental Charter (Extract)

Environment Protection DeclarationOlympus Group, respecting nature and the health and safety of man-kind, has resolved through its technological development and through adopting ecologically compatible business practices to contribute to the reestablishment of a healthy environment and a society in which a sustainable development is possible.

Guideline for Environmental Action In all business activities, Olympus Group will give priority to environmen-tal protection and will apply itself with dedication to this task both on an organizational and individual basis.

1. Technology DevelopmentWe will develop products, services and production technologies with a careful and conscientious regard for safety and environmental pro-tection. Furthermore, we will make the results of such developments available to everybody.

2. Drawing up Norms and Assessing Results We will take the initiative in setting up our own pioneering standards and norms. We will assess the environmental impact at each stage of our operations from development through to production and sales to realize continuous improvements.

3. Protection of Natural Resources and Prevention of Pollution We will make a united effort to conserve natural resources and save energy. At the same time, we will push forward with activities based on the effective use of recycling waste, and endeavor to reduce envi-ronmental loads and prevent pollution.

4. Compliance and Activity Support We will comply with environment-related laws and regulations, and co-operate with environmental measures recommended by govern-ment bodies. We will actively participate in environmental protection activities being carried out by regional and international communities.

5. Education and Total Staff Participation We will publicize and engage in other activities with the purpose of informing all Olympus staff of the need for environmental protection. We will encourage each and every staff member to increase his or her understanding of environmental protection activities at home, at work, and in the community.

6. Structure to Promote Activities Under our director in charge of environmental protection, we will make clear our responsibility to promote environmental protection. We will establish a structure through which we can take appropriate measures to deal with changes as they occur inside and outside Olympus.

Olympus Group Environmental Charter

There were no environment-related lawsuits or fines in fiscal 2011. In October 2011, waste water discharged from Tatsuno Plant after washing the building exterior walls had temporar-ily exceeded the waste water standard value, on which we consulted the municipal government and completed neces-sary corrective actions. Although there was no penalty im-posed from the municipal government, we have established procedures for washing and educating employees to prevent any reoccurrence. Meanwhile, we received 34 complaints about the noise and vibration caused by construction work in

Our efforts to supply environment-friendly products include the establishment of the Olympus Eco-Products Standards. These environmental design standards are used to assess products, packaging, manufacturing processes and logistics processes from the four perspectives of environment protec-tion and safety, energy conservation, resource conservation, and information disclosure.

In fiscal 2010, Olympus added new environmentally re-sponsible design standards that are even more rigorous than the Eco-Products Standards. Under these new standards, products that make significant contributions to the reduc-tion of environmental loads are classified as “Super Eco-Products.”

In fiscal 2011, 69 products were added to the list of Olympus Eco-Products, bringing the cumulative total to 418, including 13 Super Eco-Products. Sales of Eco-Products now account for 52% of total sales.

Olympus monitors and works to reduce environmental loads at all stages of product life cycles, including resource procure-ment, production, distribution, waste disposal and recycling.

Compliance with Environment- Related Laws and Regulations

Product-Related Initiatives

Manufacturing-Related Initiatives

SZ-14 Compact Digital Camera (package weight* approximately 42% lighter than earlier products)

* Package weight: the combined weight of the product, accessories and packaging

IPLEX Ultralite Industrial Videoscope (endoscope) (package weight* reduced by 72% and CO2 emissions by 82%

compared with earlier models)

Olympus respects the systems of nature and is working toward the creation of a sustainable society and a healthy environment through the technology development and business activities targeted toward harmony with the environment.

For the Environment

Key Products Certified as Super Eco-Products in Fiscal 2011

Hatagaya. We held a briefing for residents of local communi-ties and took necessary steps to reduce the noise and vibra-tion, including changing the construction method.

23Olympus CSR Report 2012 Digest

In addition to production cuts necessitated by the economic downturn and reductions in power consumption in response to a government directive resulting from power shortages in Japan, Olympus continues to implement day-to-day energy-saving activities, including the use of natural energy.

Another focus is the development of alternatives for non-energy greenhouse gases, such as HFC, PFC and SF6, which are used for cleaning, semiconductor etching and other processes. We are now working to accelerate initiatives to improve the environmental performance of our manufacturing operations. In March 2011, Olympus completely eliminated the use of HFC solvents for lens cleaning processes at the Ina Plant and reduced the use of these substances by 99% year on year.

Water, which we use to wash products and in various other areas of our business activities, is also an extremely important resource for the maintenance of biodiversity. For this reason, we are continually developing production methods that require less water and inspecting equipment to prevent leakage. We are also working to minimize environmental impacts by maintaining and monitoring wastewater treatment facilities, and by monitoring the quality of wastewater.

Manufacturing-related CO2 emissions: 97,652 tons, or a 18% reduction from the fiscal 2007 level

FY 2014 target: A 20% reduction from the fiscal 2007 level

Water used: 1.51 million m3 (a 36% reduction relative to the fiscal 2007 level)

FY2014 target: A 20% reduction relative to the fiscal 2007 level

Total waste: 4,473 tons (a 20% reduction relative to the fiscal 2007 level)

FY2014 target: Reduce waste by 20% relative to the fiscal 2007 level

2007 2008 2009 2010

(t)

2014 target(�scal year)

5,588 5,6245,1685,211 5,120

4,684 4,2903,900

4,470

0

1,000

2,000

3,000

4,000

5,000

6,000

2011

4,4734,104

Waste Recycling

In addition to our efforts to reduce waste disposal at landfills and improve the recycling rate, we are working to minimize processing losses by developing production technologies, and by targeting waste reduction at the product design stage. Through these approaches, we are striving to enhance the resource productivity of our manufacturing operations.

2007 2008 2009 2010 2014 target(�scal year)

0

1,000

2,000

3,000

2,3602,160

1,9001,720 1,890

(thousand m3)

2011

1,510

In fiscal 2011, Olympus conducted a biodiversity field survey in cooperation with independent specialist organizations to assess the state of flora and fauna habitats and the environmental impact of plant operations within the Tatsuno Plant site and in surrounding areas. As a result of this case study, we formulated b i o d i v e r s i t y p ro t e c t i o n guidelines as the basis for continuing efforts to alleviate factors that were identified as having a particularly serious impact on biodiversity.

Protecting Biodiversity

A biodiversity field survey was carried out at the Tatsuno Plant.

(t-CO2)

0

20,000

60,000

100,000

140,000

2014 target(�scal year)

CO2 generated from energy

CO2 not generated from energy

2007

3,918

115,097

2009

1,428

106,009

2008

2,235

110,085

2010 2011

1,354

98,908

11

97,641 95,212

CO2 Emissions Generated/Not Generated from Energy

Olympus Logistics Corporation discovered that the use of non-stackable packaging was responsible for an increase in the number of shuttle trips between the Tokyo Center and the Tatsuno and Ina Plants. In 2011, the company solved this problem by introducing returnable containers for the shuttle service. These containers were put into use in fiscal 2012 and are now helping to reduce logistics loads in Japan.

Logistics-Related Initiatives

Wacopon returnable boxes allow items to be stacked for transportation.

Waste Emissions

Water Use

WEB CSR Activities—For the Environment http://www.olympus-global.com/en/csr/

environment/

More detailed information can be found on our website.

24Olympus CSR Report 2012 Digest

During the dialog, Professor Ishida and Ms. Kuroda ex-pressed frank opinions and asked questions about the efforts made by Olympus to prevent financial improprieties and strengthen compliance. The discussion was based on various sources of information, including responses to a questionnaire survey about the special edition of the 2012 CSR Report (“Rebuilding Trust: The First 100 Days”).

Olympus CCO Masahito Kitamura responded to ques-tions and provided specific numerical data about various subjects, including the factors that led Olympus manage-ment to defer reporting of massive losses and include falsified information in financial statements, as well as the operation of the company’s Hotline Systems.

There was also discussion about the difficulty of changing a corporate culture in which employees are still unable to express criticisms of the company freely and an organizational structure that has become rigid. Participants in the dialog shared their views on solutions to these issues, which were some of the causes of the problems.

As Chief Compliance Officer, Mr. Kitamura has been involved in the establishment of new systems and other efforts to rebuild Olympus since immediately after the establishment of the new management structure. He em-phasized the importance of consolidating compliance by ensuring that all employees assimilate the redefined “Social

Olympus is working to prevent recurrences of fi-nancial impropriety and restore its reputation by rebuilding its governance systems and strengthen-ing compliance. In November 2012 we invited out-side experts to Olympus headquarters to provide recommendations based on various perspectives about what Olympus needs to do now.

Stakeholder Dialog

Date: Thursday, November 1, 2012 Venue: Tokyo Office, Olympus Corporation

Theme: Initiatives to prevent recurrences of financial impropriety and strengthen compliance

Associate Professor, Institute of Business and Accounting, Professional Graduate School, Kwansei Gakuin UniversityExecutive Director, Caux Round Table Japan

Hiroshi Ishida

Executive Director, CSO Network JapanKaori Kuroda

Executive Officer and Chief Compliance Officer, Olympus Corporation

Masahito Kitamura

Participants:

Essential Future Initiatives

〉〉〉Monitoring of administration of systems and compliance education

“You should promote Compliance Focus Month activities and hold regular surveys about employee awareness.”

〉〉〉Improving assimilation of new management philosophy

and Corporate Conduct Charter throughout the organization, including overseas sites

“You should create more opportunities to raise awareness, including town meetings at overseas subsidiaries, and workplace discussion sessions.”

〉〉〉Revitalization of Hotline Systems“It is not enough simply to distribute compliance cards. Educational activities are needed to raise awareness of the system and encourage its use.”

〉〉〉Putting “soul” into systems and structures “You need to devise mechanisms that allow not only management but also employees to participate in initiatives.”

What does Olympus need to do now to restore its reputation?

IN” management philosophy and the new Corporate Conduct Charter. He said that Olympus management was strongly aware that their challenge now was to achieve the vital tasks of putting a new “soul” into systems and struc-tures at Olympus. Mr. Kitamura also spoke about plans for future initiatives, including Compliance Focus Month ac-tivities and surveys about employee awareness. Professor Ishida and Ms. Kuroda both offered insightful advice about the involvement of employees in the administration of systems.

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Recommendations to Olympus

I am told that Olympus once had a free and open work-place environment. As the company grew larger, your or-ganization became bloated and rigid. That situation led to the recent financial improprieties. It is not be easy to rees-tablish a company’s corporate culture in which people are free to speak their minds. I believe that you should base your approach on the creation of mechanisms that would make it easy for employees to participate in the develop-ment and administration of new measures and systems. As far as the enhancement of the Hotline Systems is concerned, you obviously need to guarantee secrecy. All necessary steps should be taken to protect whistleblow-ers and guarantee their right to report problems.

I was very impressed by your decision to set up a task team consisting of 30 people selected from among your employees to review your management philosophy and

Corporate Conduct Charter. I also believe that the stakeholders who were probably most affected by the recent problems were actually your employees. I hope that within the next one or two years you will hold roundtable meetings for your em-ployees and listen carefully to what they are saying about problems and issues in their workplaces.

Kaori KurodaExecutive Director, CSO Network JapanAfter working for a private sector company, Kaori Kuroda went overseas to study and was employed in the Center on Japanese Economy and Business of Columbia University’s Business School. She has also worked for the Asia Foundation in Japan. She has been employed by the CSO Network since April 2004 and was also involved in the formulation of ISO 26000 as an ex-pert representing Japanese NGOs.Ms. Kuroda has also been involved in the “New Public Commons” Promotion Conference. Other posts include membership of the Subcommittee on Economic Cooperation of the Trade and Economic Cooperation Committee of the Ministry of Economy, Trade and Industry’s Industrial Structure Council.

What society wants to know about Olympus now is the extent of your commitment to the prevention of recur-rences of these problems and the rebuilding of Olympus. For example, you’ve set up a Hotline Systems with an outside law firm, but you need to ensure that the system is administered transparently, including the disclosure of data about the use of the system and employee satisfac-tion with it.

In addition to its traditional strengths such as tech-nology and quality, Olympus also has these basic ideals encapsulated in its “Social IN” philosophy. There is also an expectation that when those ideals are assimilated by the organization they will eventually be embodied in new products combining product quality with characteristics, which reflect the qualities and character of the company. As was also stated in “Rebuilding Trust: The First 100

Days,” if you create a roadmap for your efforts to make Olympus not only a more successful company but also a socially trusted com-pany, the result will be a virtuous circle that will help employees to better understand what you’re try-ing to achieve while also facilitating feedback from stakeholders.

Hiroshi IshidaAssociate Professor, Institute of Business and Accounting, Professional Graduate School, Kwansei Gakuin University Executive Director, Caux Round Table JapanHiroshi Ishida was born in Tokyo in 1966. After graduating with a degree in economics from Seijo University, he worked for the Industrial Bank of Japan in market dealing, planning and other areas. He has been active in the Caux Round Table Japan since October 2000 and became the organiza-tion’s Executive Director in 2006. Mr. Ishida is also an associate professor at Kwansei Gakuin University.

The full content of the stakeholder dialog is included in the Olympus CSR activity website. The special edition of the 2012 CSR Report (“Rebuilding Trust: The First 100 Days”), which was published in August, also contains results from external monitoring surveys and in-house surveys.

WEB CSR Communication http://www.olympus-global.com/en/csr/csrcommunication/

Full Record of the Stakeholder Dialog

Through this dialog, Professor Ishida and Ms. Kuroda contributed recommendations that offer valuable insights for Olympus, which has at last reached the starting point of its corporate rebuilding process. This dialog has also given me a very clear awareness of the importance of employees as stakeholders. The most important priority for Olympus in the short-term will be to instill a compli-ance culture throughout its organization. In the longer term perspective, Olympus will apply these valuable recommendations as it continues to put its “Social IN” philosophy into practice through its business activities.

Masahito Kitamura Executive Officer and Chief Compliance Officer, Olympus Corporation Masahito Kitamura was born in Tokyo in 1959 and joined Olympus in 1982. He has previously served as General Manager of the Industrial Systems Group, the IT Strategy Development Dept. and as Division Manager of the Information Technology. His present post dates from April 2012. He also serves as Group President of the Corporate Governance Office.

Response to the Recommendations 〉〉〉

26Olympus CSR Report 2012 Digest

Olympus Corporation

CSR Department, Group Compliance Division

Shinjuku Monolith, 3-1 Nishi-Shinjuku 2-chome, Tokyo 163-0914, Japan TEL: +81-3-6901-9299 E-mail: csr_info@ot.olympus.co.jp

Olympus Corporation Social Responsibilities Activities website http://www.olympus-global.com/en/csr